Russia will find a "civilized" solution to the situation surrounding the huge Kovykta gas condensate field in Siberia, which is owned by BP PLC's (BP) Russian joint venture TNK-BP Ltd., Russia's Natural Resource Minister Yuri Trutnev said Monday.
TNK-BP had agreed in 2007 to sell its stake in Rusia Petroleum, which holds the license for the field, to state-controlled OAO Gazprom (GAZP.RS) for between $700 million and $900 million, but talks between the two companies broke down.
"Under Russian law, the license should be withdrawn. But I don't think it will be beneficial for the investment climate, if we withdraw the license now," said Trutnev.
He called the resolution of the problem a "long search for a civilized outcome."
The Natural Resources Ministry agency that handles licensing, Rosnedra, is currently considering whether to revoke Rusia Petroleum's Kovykta license as the company allegedly is not complying with the terms. TNK-BP Ltd., half-owned by BP, has a 62.8% stake in Rusia Petroleum.